Question
The CFO of Gabe Corp. suspects that an employee has been stealing cash from the company. The employee is responsible for receiving cash from customers
The CFO of Gabe Corp. suspects that an employee has been stealing cash from the company. The employee is responsible for receiving cash from customers and posting the payments to the customer accounts, as well as preparing the bank reconciliation and managing the cash account. To check up on the employee, the CFO prepares his own bank reconciliation and comes up with the following:
| Gabe | Differences | Bank | |
| $3,900 | Beginning balance | $4,000 | |
| (50) | Service charges | ||
| Outstanding checks | (800) | ||
| (100) | NSF Check from Customer | ||
| Deposits in transit | 250 | ||
| 25 | Interest earned | --------- | |
| $3,775 | Total | $3,450 |
Do you think the employee has stolen from the company? Why or why not? If the employee has stolen, how much has been stolen? How could this kind of problem be prevented in the future?
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Telecourse Guide For Accounting In Action Managerial Accounting
Authors: Ray H. Garrison, Eric W. Noreen
9th Edition
0072386533, 978-0072386530
